The FASB recently issued an Exposure Draft that is intended to address certain questions that have arisen regarding the implementation of a number of newly issued ASUs related to recognition and measurement of financial instruments, credit losses and targeted improvements to hedge accounting.

“Since issuing the financial instruments standards, the FASB staff has been working with stakeholders to obtain feedback and address questions on the guidance,” noted FASB Chairman Russell G. Golden. “Through these interactions, the FASB identified areas of the guidance that require clarification and correction. The amendments in the proposed ASU would address those areas.”

Proposed amendments include, among other things, scope clarifications, the addition of practical expedients, clarified definitions and correction of cross references. Overall, the proposed amendments are not intended to be substantive changes, but clarifications and corrections that make the existing standards easier to understand and implement.

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